Proactive weekly Mining highlights: Arkle Resources, Anglo Asian Mining, Savannah Resources, Trident
Arkle Resources PLC (LON:ARK) said Monday that it has identified new gold targets at its gold projects in Ireland, following soil sampling. A programme for trenching and drilling at the Inishowen gold project in County Donegal is planned to commence shortly. Meanwhile, trenching has commenced on the Mine River gold project located on the Wicklow- Wexford county border.
On the same day, Anglo Asian Mining PLC (LON:AAZ) updated the mineral resources and reserves at the Gedabek open pit, Gadir underground mine and Ugur open pit mine in Western Azerbaijan. The group said Gedabek now contains resources of 735,000 ounces of gold and 69,100 tonnes of copper, including material in stockpiles, with a reserve of 284,000 ounces of gold and 26,000 tonnes of copper. Gadir now contains resources of 267,000 ounces of gold and 2,183 tonnes of copper, with a reserve of 49,000 ounces of gold and 191 tonnes of copper, it added.
Savannah Resources PLC (LON:SAV) said it has completed the sale of its stakes in the Block 4 and Block 5 copper projects in Oman to Force Commodities Ltd (ASX:4CE). Savannah will receive 50mln new fully paid ordinary shares issued by Force, giving Savannah a 4.9% stake in Force after four million shares are used to settle transaction costs. Savannah will receive preferential payment of A$3.5mln in cash from an existing loan out of cash flow generated from production on Block 5. And it will also get a 1% net smelter royalty on any future metal sales from Force’s portions of Block 4 and Block 5.
Trident Royalties PLC (LON:TRR) (FRA:5KV) said it received royalty payments amounting to just over US$480,000 in the third quarter of 2020. During the period the company announced three transactions over a total of six royalties. The royalty from Koolyanobbing amounted to A$652,073, taking the total received for 2020 to just over A$2mln. The total royalty revenue from Koolyanobbing over the first three quarters alone represents more than 30% of the royalty purchase price recovered. The company also received an inaugural payment from the Mimbula copper royalty. Trident had a cash balance of US$12.68mln as of September 30, 2020.
Later in the week, Trident Royalties announced the appointment of Martin Page as its chief financial officer. Page has over 10 years’ experience in the natural resources sector, most recently as CFO of Toro Gold Ltd, a private equity-backed West African gold producer which was sold to Resolute Mining in July 2019 for US$300mln. He was a member of the senior executive team that guided Toro through the latter stages of its development and subsequent divestment.
Anglesey Mining PLC (LON:AYM) said it is “very encouraged” by continued strength in commodity prices over recent months and that it is now “actively reviewing” new exploration and development opportunities. In an update for the company’s general meeting on October 30, the company’s chairman John Kearney said the firm is taking “a very positive view on copper” and expects the current price to increase further in the medium term, which in turn should benefit the company as it considered deeper resources at its Parys mountain project in Wales, where copper trends tend to dominate over zinc.
AEX Gold Inc. (LON:AEXG) (CVE:AEX), an independent gold company with a portfolio of gold licences in Greenland, has said it continues to make good progress at the fully-funded Nalunaq Project in South Greenland. The company noted that significant work has been completed on key work streams since the group’s successful AIM listing in London and fundraising in July 2020. The project remains on track, with workstreams progressing in line with management expectations, the group added.
Thor Mining PLC (LON:THR) told investors that the first project milestone has been achieved for its Colorado prospects as sampling results reveal high-grade assays. The company, which is earning into the assets through a deal with vendors American Vanadium (AVU), said the sampling results have exceeded the criteria for the first milestone share issue to AVU. Some 18mln Thor Mining shares are now being issued to AVU as a performance payment. Sampling, carried out in the due diligence period, has yielded assay results of high-grade uranium (up to 1.25%) and vanadium (up to 3.47%). For the performance to apply fifteen or more samples would’ve needed to measure above 0.1% uranium or 1% vanadium.
Bezant Resources PLC (LON:BZT) said the longstop date for the listing of 80% of its Mankayan copper-gold project in the Philippines has been pushed back until 15 November. The listing vehicle MMJV, which in turn is a subsidiary of Mining and Minerals Industries Holding, is being reversed into a Singapore-listed company called AsiaPhos. Once the deal has been concluded AsiaPhos will issue £42mln-worth of shares with Bezant receiving stock valued at £5.6mln. It also holds the remaining 20% of Mankayan.
Mkango Resources Ltd (LON:MKA)(CVE:MKA) has commenced an extensive hand-auger drilling and soil sampling programme to identify rutile prospects within its 869 square kilometre Mchinji licence in Malawi. The drill programme follows reconnaissance work which resulted in the discovery of rutile during a shallow soil sampling and auger programme completed in September.
Anglo Pacific Group PLC (LON:APF) chief executive Julian Treger described the company as encouraged by the operational performance across its mine royalty portfolio over the third quarter. Mines have continued to function without material disruption due to the coronavirus (COVID-19) pandemic, he noted in a trading update. The royalty company reported that a total of £6.4mln was generated from its portfolio in the quarter ended September 30, 2020, compared to £6.5mln in the second quarter.
European Metals Holdings Limited (LON:EMH) (ASX:EMH) (FRA:E861.F) (OTCPINK:EMHLF) announced on Friday that due to increasing interest in its Cinovec project, the largest hard rock lithium deposit in Europe, the company will pursue a US-based OTCQX listing and has commenced trading on the OTC Pink Market The group said its entry to the US-based OTC markets – and in particular the actively-traded OTCQX market – increases the ease with which North American investors can purchase European Metals securities. The ASX will continue to be the company’s primary listing, it added, with investors able to purchase shares through the OTCQX, OTC Pink, UK-based AIM market and Germany’s Frankfurt Börse.
Panther Metals PLC (LON:PALM) said reconnaissance work conducted at its Dotted Lake property in Ontario, Canada, has confirmed high-grade gold at surface. Panther submitted a total of seven samples from the under-explored Dotted Lake property for analysis at ALS Laboratories, taken from an area of stripped ground bordering the most northerly point on the Dotted Lake shoreline. This area was cleared in 2010 when four trenches were excavated to investigate gold in soil anomalies identified within small soil sampling grids conducted in 2008 and 2009.
Jubilee Metals Group PLC (LON:JLP) said it has executed a number of copper cobalt tailings transactions that have nearly doubled its rights to copper tailings in Zambia. The AIM-listed firm said the transactions have secured the rights to an additional 115mln tonnes of copper and cobalt-containing surface tailings as part of its strategy to expand operations in the country, taking its total access to around 270mln tonnes of tailings.
Meanwhile, Shanta Gold PLC (LON:SHG) has the potential to double in value over the next twelve months according to a punchy update from broker Liberum Capital. The Africa-focused gold miner recently raised US$41mln in a modestly discounted placing that will facilitate prompt development of the highly attractive West Kenya project under any gold price scenario, added the broker. Liberum said that with plenty of news flow to come and a promising macro backdrop for gold, the price target remains 30p (previously 31p), with the adjustment reflecting the share issue.
On Thursday, Greatland Gold PLC (LON:GGP) highlighted a transformational year in its final results, with the Havieron gold-copper deposit proving to be a “game changer” as a campaign led by operator Newcrest continued to unearth high-grade results. Newcrest has so far drilled some 100,000 metres at the project since May 2019. “A series of excellent drill results to date from Havieron have continued to extend the footprint of mineralisation, and an initial resource is on track to be delivered before the end of calendar 2020,” Greatland chairman Alex Borrelli said in the results statement. The pre-revenue company reported a £5.14mln loss for the twelve months ended June 30, 2020, and it finished the financial year with £6.02mln of cash and equivalents.
A day earlier, Primorus Investments PLC (LON:PRIM) (AQSE:PRIM) told investors it has sold its remaining shares in Greatland Gold. The company announced it had sold 20mln Greatland shares at an average price of 23.09p to generate £4.6mln of proceeds. Primorus said it no longer has an interest in Greatland. The investment company noted that it realised in excess of £6.5mln over the life of its investment in Greatland. It began with an investment of £630,000 made in late 2018 and early 2019.
Rainbow Rare Earths (LON:RBW) is to acquire a major brownfields rare earth project in South Africa called Phalaborwa Rare Earths project. Combined with future output from Rainbow’s existing project at Gakara in Burundi, production from Phalaborwa will make Rainbow one of the largest producers of neodymium and praseodymium in the world. Rainbow’s chief executive George Bennett estimates that the company’s combined total production from both projects could amount to around 4,000 tonnes of neodymium and praseodymium per year.